Energy giant fined $14 million for misleading prices

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Energy giant fined $14 million for misleading prices

One of Australia’s biggest energy retailers has been ordered to pay $14 million as a penalty for misleading consumers about electricity prices.

EnergyAustralia has admitted it misrepresented the estimated annual price of its electricity for an “average” customer and ******* to state the lowest possible price in communications sent to 566,000 people and in 27 electricity offers published online.

All of this occurred in 2022 when electricity prices were rising and many Australians were attempting to switch to cheaper plans.

The Federal Court’s order that EnergyAustralia pay $14 million is one of the biggest penalties levelled against a retailer over electricity prices.

Consumer watchdog head Gina Cass-Gottlieb said it was essential that electricity companies provide consumers with accurate information.

“Some consumers may also have been misled by EnergyAustralia’s statements into thinking that a price change was less than it actually was, causing them to stay with their existing plan when in fact a different plan may have represented a better deal,” the *********** Competition and Consumer Commission chair said.

The electricity giant has apologised to its customers and has agreed to undertake measures to improve its compliance.

EnergyAustralia managing director Mark Collette said once the company became aware it took immediate action, tried to contact every customer impacted and has since improved its governance.

“We are sincerely sorry,” he said.

“We recognise that with the rising cost of living impacting everyone, we must get the right information to our customers.”

Customers with concerns can contact EnergyAustralia’s team, Mr Collette said.

Energy retailer Dodo was ordered to pay more than $825,000 for breaching rules on late customer payments in early September.

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